Managing Cash for Gifts

Managing Cash for Gifts

When some organizations receive a Gift, they deposit it directly into one of the accounts constituting the pool. This debits the G/L pooled asset account in General Ledger. The default Gift debits and credits can be set up via the Fund Class record. Refer to Maintaining Fund Class Codes in the Fund Management module for more information.

NOTE: The actual bank account within the pool where you deposit the Gift is irrelevant to General Ledger (which represents the entire pool with a single asset account), but FACTS is set up with a default deposit bank account, which can be changed on a transaction-by-transaction basis.

Other organizations deposit Gifts into an interest-bearing bank account outside of the pool, and periodically move the accumulated Gifts into the pool. A Cash Call routine in FIMS can simplify this transfer by making Fund-level General Ledger journal entries, crediting each Fund’s G/L holding account to bring its balance to zero, and debiting the G/L pooled asset account. A report sums the journal entries – this is the total amount that needs to be transferred at the bank. Refer to Running Automatic Cash Entries for more information.

NOTE: Refer to Managing Cash via Asset Rebalancing for more information about other cash management methods.